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Headline Economic Results

This release was compiled during the COVID-19 crisis. The results contained in this release reflect some of the economic impacts of the COVID-19 situation. For further information see Information Note - Implications of COVID-19 on the Quarterly National Accounts Quarter 4 2021.

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Year 2021 Analysis

Annual increase of 13.5% in Real GDP in 2021

Table 1.1 GDP, GNP and MFDD at constant 2019 prices, 20211
 Amount €mAnnual % change
Gross Domestic Product428,31813.5
Gross National Product317,72811.5
Modified Final Domestic Demand188,2936.5
1Constant Market Prices, chain linked annually and referenced to year 2019.

Preliminary estimates indicate that GDP in volume terms increased by 13.5% for the year 2021. GNP showed an increase of 11.5% in 2021 over 2020, while the deglobalised measure, Modified Domestic Demand (MDD) increased by 6.5% over the year.

Industry (excl. Construction)Information and CommunicationProfessional, Admin and Support ServicesPublic Admin, Education and HealthDistribution, Transport, Hotels and RestaurantsReal Estate ActivitiesFinancial and Insurance ActivitiesConstructionArts, Entertainment and Other ServicesAgriculture Forestry and Fishing

Value added for Multinational-dominated sectors increased by 21.9% in 2021, all other economic sectors grew by 5.0%

Value added for the MNE dominated Industry (excluding Construction) and Information & Communication sectors recorded increases of 24.0% and 14.1% respectively in real terms in the year, see Table 2.3. The domestically focussed Distribution, Transport, Hotels & Restaurants sector grew by 6.2% year-on-year while the Arts & Entertainment sector increased by 12.6%. Construction recorded a decline of 4.7% in volume terms in 2021 compared to 2020, while Professional Admin and Support Services recovered by 4.7% in the year. Other service sectors exhibited modest, single digit percentage growth in 2021. Public Administration, Education & Health grew by 3.6%, Real Estate activities by 3.0% and Financial & Insurance by 2.7%. The Agriculture, Forestry & Fishing sector declined 1.4% year-on-year.

Personal Consumption ExpenditureGovernment ExpenditureGross Fixed Capital FormationValue of Physical Changes in StocksNet ExportsModified Final Domestic DemandGDP

Modified Domestic Demand increased by 6.5% in 2021

On the expenditure side of the accounts (Table 3.3), Capital Investment, driven by Intellectual Property Products (IPP), declined by €56.8 billion during 2021 while Personal Consumption Expenditure, which accounts for just over 44% of Domestic Demand, increased by 5.7% compared with the previous year. Government expenditure increased by 5.3% over the same period. Final Domestic Demand decreased by 16.6% in 2021 compared with 2020 while Modified Domestic Demand increased by 6.5% over the year.

Exports grew 16.6% during the year while Imports decreased by 3.7%, driven to a considerable extent by a fall in IPP investment compared with 2020. Overall net exports for the year increased by €98.1 billion which when combined with the 16.6% fall in domestic demand (-€47.5 billion) resulted in an overall increase in real GDP in 2021 of 13.5%. Factor income outflows were 19.6% higher in 2021 (€18.1 billion higher) compared with 2020 leading to an overall increase in real GNP of 11.5%.

Foreign-owned MNE-dominatedOther
Public Admin, Education and Health31.97008489730.253186762
Distribution, Transport, Hotels and Restaurants19.0860111817.443178319
Industry (excl. Construction)15.32744841714.730518796
Professional, Admin and Support Services15.08152609913.415133642
Information and Communication10.5164767979.248032431
Financial and Insurance Activities9.0491862528.425490891
Arts, Entertainment and Other Services2.0306098471.881400772
Real Estate Activities0.9342693020.879434113
Agriculture Forestry and Fishing0.8210519920.789502347

Compensation of Employees increased by 8.1% in 2021 compared to 2020. All sectors experienced growth. The largest increases were seen in Information and Communication (13.7%), Professional, Admin and Support Services (12.4%) and Construction (11.9%).

Quarter 4 2021 Analysis

Decreases of 5.4% in GDP and 2.1% in GNP in Quarter 4

Table 1.2 GDP, GNP and MFDD at constant 2019 prices, Q4 20211
 Amount €mQuarterly % change
Gross Domestic Product104,408-5.4
Gross National Product81,134-2.1
Modified Final Domestic Demand49,0541.3
1Constant Market Prices, chain linked annually and referenced to year 2019, seasonally adjusted

Initial estimates for the fourth quarter of 2021 indicate that there was a decrease of 5.4% in GDP in real terms in Q4 2021 compared to the previous quarter while GNP fell by 2.1%. Modified Domestic Demand, a broad measure of underlying domestic activity that covers personal, government and investment spending, increased by 1.3% in Q4.

Q1 20191.780756125961386.51205145603708
Q2 20192.26117811794180.773749391522727
Q3 2019-0.1841680526202590.792942099576255
Q4 20191.481295685795872.56023611733005
Q1 20202.829810888245832.01285837562946
Q2 2020-3.03739812089495-5.22475805484328
Q3 20209.819314809890950.556379143899477
Q4 2020-4.2326146189178810.6469516178979
Q1 20219.73447704895876-1.57314832900698
Q2 20214.622562357669075.0830554915632
Q3 20211.239847097942235.45660282405585
Q4 2021-5.36243168296899-2.05496082760396

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Industry (excl. Construction)Information and CommunicationProfessional, Admin and Support ServicesPublic Admin, Education and HealthDistribution, Transport, Hotels and RestaurantsReal Estate ActivitiesFinancial and Insurance ActivitiesConstructionArts, Entertainment and Other ServicesAgriculture Forestry and Fishing
Q4 202142.97093126817.9816330469.4220901149.329036488.5184163745.1307910223.744192582.0366691571.0174317420.752963726
Q3 202148.96299919516.6785051169.4744825259.1597527048.3049310085.1410818413.7298202731.9173264240.9225291550.886958405

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The MNE dominated Information & Communication sector recorded strong growth in Q4 compared with the previous quarter, an increase of 7.8%. The domestically dominated Distribution, Transport, Hotels & Restaurants sector increased by 2.6% following the further easing of COVID restrictions during the initial part of the quarter, however the subsequent emergence of the Omicron COVID variant later in Q4 had an impact in particular for the results for the month of December. The Arts & Entertainment sector rose by 10.3% quarter-on-quarter while the Public Administration, Education & Health sector increased by 1.8% over the period compared with Q3 2021. The Construction sector grew by 6.2% over the same period with Finance & Insurance exhibiting a modest increase of 0.4%. The Industry (excluding Construction) sector declined by 12.2% in Q4 2021 while quarter-on-quarter decreases were also recorded in the Agriculture sector (15.1%), Professional & Administrative services (0.6%) and Real Estate (0.2%). (See Table 2.5). 

Personal Consumption ExpenditureGovernment ExpenditureGross Fixed Capital FormationValue of Physical Changes in StocksNet ExportsModified Final Domestic DemandGDP
Q1 201927.8391104018.89084209218.6877843923.03149790630.0809386546.33113650687.384298845
Q2 201928.0867425398.927061819762.293535102-0.361265585-10.3419423546.39871982889.360213489
Q3 201927.6051909079.132910585921.4015458971.31147322728.02311555447.05605494789.195640524
Q4 201927.399461968.946658783388.563188011-0.056312293-35.3874193145.89477027290.516891699
Q1 202026.4514306319.054591235281.400907282.206933134-25.6692207845.33928270193.078348556
Q2 202022.68802531210.1416498820.890137251.87189658236.28699111140.69254061490.251188546
Q3 202025.32357403710.16723270319.8838024330.56933471245.34560880345.72315499199.113236869
Q4 202024.89482539710.44144654324.7503939120.28070077732.7675313544.81052085894.918155516
Q1 202123.48124267410.40872914218.5520603831.71894986451.38648667942.980803254104.15794158
Q2 202127.11865135310.48260029219.4907694230.90615811753.73621366247.296932189108.97270738
Q3 202127.21156346710.47353421819.3005465031.65636398150.64793366648.400526941110.32380233
Q4 202127.13439717310.56645790134.065882608-0.78451111530.6914247249.053845767104.4077638

Get the data: NQQ48NQQ49NQQ50

On the expenditure side of the accounts (Table 3.5), Capital Investment grew by €12.3 billion during the quarter, with the Capital Formation element increasing by 76.5%. Capital Investment accounted for 46.9% of total domestic demand in Q4 2021. Personal Consumption Expenditure declined modestly by 0.3% quarter-on-quarter. Exports increased by 1.3% in Q4 2021 compared with Q3 2021 while Imports rose at a significantly faster rate of 22.7% which meant that overall net exports for the quarter were 39.4% lower in Q4 compared with Q3 or just under €20 billion lower in money terms quarter-on-quarter. These impacts when combined resulted in an overall decline in the real GDP growth rate in Q4 2021 of 5.4%. Final Domestic Demand was up by 25.9% in Q4 compared with Q3 while Modified Domestic Demand increased by 1.3% over the same period.

GDPNet Factor Income from Rest of WorldGNP
Q1 201987.384298845-19.6127489467.771549903
Q2 201989.360213489-21.0642816368.295931858
Q3 201989.195640524-20.3581614768.837479054
Q4 201990.516891699-19.9170106470.599881055
Q1 202093.078348556-21.0573918872.020956674
Q2 202090.251188546-21.9931526168.258035939
Q3 202099.113236869-30.4754274568.637809415
Q4 202094.918155516-18.9725117475.945643775
Q1 2021104.15794158-29.4070354374.750906149
Q2 2021108.97270738-30.4221711978.550536189
Q3 2021110.32380233-27.4870753782.836726965
Q4 2021104.4077638-23.2732991381.134464675

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Factor income outflows were €4,214m lower than in the previous quarter leading to an overall decrease in GNP of 2.1% for the fourth quarter compared with the previous quarter.

The calculation methods for quarterly accounts are similar to those used in the annual National Income and Expenditure. As some of the available sources are of lesser reliability than those used for the annual national accounts, the quarterly estimates are subject to a greater margin of error than the annual figures. These preliminary estimates will therefore be revised when the next detailed annual results are published.


Go to next chapter >> GDP by Sector